Certificate in Treasury Management Course

Program Objectives:

By the end of the program, participants will be able to:

• Advance their knowledge of corporate treasury management and the treasury function.
• Obtain up-to-date practices covering Asset Liability Management and cash management techniques.
• Develop a practical understanding of financial markets and their products.
• Correctly recognize and measure financial instruments under International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).
• Improve their understanding of fair value measurement and its effect on financial instruments’ presentation.
• Leverage their understanding of hedging and speculation, and understand the different hedging techniques applied by the treasury function

The Contents:

Treasury Function

• Definition and Responsibilities of Treasury Function
• Treasury Professionals’ Role
• Risks Surrounding the Treasury Function:
• Credit and Interest Rate Risk
• Liquidity Risk and Exchange Rate Risk

Cash and Liquidity Management

• Asset and Liability Management versus Treasury Management
• Understanding the Cash Cycle
• Reasons for Holding Cash: Transaction, Precautionary and Speculative
• The Optimum Cash Balance
• Baumol’s Model
• Miller-Orr Model
• Cash Management Techniques
• Managing and Accelerating Collections
• Managing and Decelerating Disbursements
• Ratio Analysis for Decision Making
• Accounts Receivable Turnover
• Inventory Turnover
• Accounts Payable Turnover
• Cash Conversion Cycle

Corporate Finance Theory

• Basic Principles in Corporate Finance
• The Value of Money
• Steps in Investment Management Process
• Holding Period Return Calculation for Fixed Income Securities
• Risk and Return Concepts
• Calculating Mean of Returns
• Variance and Standard Deviation for an Individual Security
• Covariance and Correlation of Returns for Two Securities
• Interpreting Correlation of Returns
• Variance and Standard Deviation for a Portfolio of Two or More Securities
• Covariance and Correlation of Returns for a Portfolio of Securities
• Normalizing Risks and Returns    
• Coefficient of Variation

Fixed Income Securities and Bonds’  Valuations

• The Money Market and Instruments
• The Debt Market
• Bonds and Sukuk
• Other Fixed Income Securities
• Risks Associated with the Debt Market
• Credit Risk
• Prepayment Risk and Interest Rate Risk
• Bonds’ Valuation Techniques
• Price and Maturity Relations
• Yield Calculations

Stock Market and Equity Valuations

• The Equity Instruments: IPOs, Seasoned Offerings and Private Equities
• Holding Period Returns for Equity Securities
• Equity Valuation Techniques
• Discounted Cash Flow Model
• Multiplier Model

Accounting for Financial Instruments

• Classification of Instruments 
• Held-To-Maturity Debt Securities (HTM) 
• Trading Securities (TS)
• Available-For-Sale Securities (AFS) 
• Fair Value Through Profit and Loss Option (FVTPL) 
• Initial and Subsequent Measurement 
• Transfer between Categories 
• De-Recognition of Financial Instruments

Briefing on Derivatives Markets, Hedging and Speculation

• Definition of Derivatives: Forwards, Futures, Options and Swaps
• Difference Between Hedging and Speculation
• General Internal Hedging Strategies
• Investing in the Home Currency
• Creating a Natural Hedge
• Currency Diversification
• Mark-Ups
• Counter-Trades and Currency Offsets